Australia Treasury bond yields rally on strong Aussie job numbers

Australia Treasury bond yields soar during early Thursday as the Aussie employment report for March ruled out previous dovish bias.

The benchmark Australian 10-year Treasury bond yields take the bids to refresh a one-week high to around 3.30% whereas the two-year counterpart prints the biggest daily gains in 13 days around 2.98%, up 2.20% on a day at the latest.

Talking about the latest data from the Australia Bureau of Statistics (ABS), Employment Change jumps by 53K versus 20K expected and 64.6K prior while the Unemployment Rate remained unchanged versus the expectation of marking the 3.6% figure. Further, the Participation Rate also improved to 66.7% versus market forecasts of reprinting the 66.6% mark.

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It should be noted that the US bond coupons also improve after printing the first daily loss of the week on Wednesday. That said, the US 10-year Treasury bond yields snapped a three-day uptrend with mild losses to around 3.40% while the two-year counterpart also eased to 3.96% by marking the first daily negative in five.

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Looking forward, the dovish bias surrounding the Reserve Bank of Australia (RBA) may weigh on the Aussie bond coupons and hence signals for the same should be eyed carefully. On an immediate basis, China trade numbers will be crucial for intraday direction.